Dubai’s crypto regulator fined 19 companies for not having licenses, aiming to protect investors and strengthen oversight. The Virtual Assets Regulatory Authority (VARA) imposed financial penalties and cease-and-desist orders on these firms. This move is part of VARA’s efforts to safeguard Dubai’s growing digital asset ecosystem and curb unlicensed crypto activities.

The crackdown on unlicensed companies in Dubai followed investigations into unauthorized operations. Companies were penalized for providing crypto services without approval and violating VARA’s marketing rules. In 2024, VARA tightened its rules on crypto marketing, requiring disclaimers on promotional materials and prior authorization for promotions to citizens and residents.

Entities fined by VARA were instructed to cease operations and stop promoting unlicensed services immediately. Fines ranged from 100,000 to 600,000 dirhams ($27,000–$163,000) based on the severity of violations. The regulator emphasized that unlicensed activity and unauthorized marketing will not be tolerated, aiming to maintain transparency, protect investors, and uphold market integrity.

Dubai’s crypto regulator is committed to balancing innovation with safeguards, ensuring a regulated and transparent market. VARA’s licensing framework aims to provide robust safeguards for all stakeholders while allowing for innovation. Engaging with unlicensed crypto operators carries legal, financial, and reputational risks, with only VARA-licensed entities allowed to offer crypto services in or from Dubai.

Read more at Cointelegraph: Dubai’s VARA Fines 19 Unlicensed Crypto Firms